What we have learned from the Covid-19 crisis
Market risks appear more balanced, quality companies poised to win market share.
Alignment of interest is a concept basic to a great many modes of human behaviour yet in the funds management sector it does not necessarily receive the attention it deserves.
For much of the investment industry, committing to ESG (Environmental, Social and Governance) has become a recently-adopted core belief. A concept that was brought into focus 15 years ago at the 2005 Who Cares Wins conference, which examined its role in asset management and financial research, ESG has now become entrenched across the industry. Although there are still widely varying degrees of commitment to ESG, investing today in assets that adhere to these principles comfortably exceeds $US30 trillion – and is growing rapidly.
Too hot, too cold or, just right? It is suggested that this fairy tale has two moral issues, firstly, the sense of entitlement as Goldilocks freely samples the bears’ home and contents and secondly, question of what is ‘just right’.
Australia’s Future Fund has named Sue Brake to take on the role of acting Chief Investment Officer at the $205 billion sovereign wealth fund. The fund promoted its former CIO, Raphael Arndt, to the role of Chief Executive Officer. Arndt has served as the Future Fund’s CIO since 2014, delivering exceptional returns, having joined in 2008.
It has been one volatile year to say the least. Both the Australian and US markets traded in volatile conditions with many asset classes and more importantly sectors delivering poor returns. From rising geopolitical trade tensions between the USA and China to an unprecedented pandemic that spread over multiple countries and brought the global economy to its knees, investors were dealt an unpredictable hand.
Portfolio construction is a function of possibilities. Equity versus fixed income is the obvious; equity the potential of capital growth, and fixed income the promise of low-yet-secure returns. You can test returns based on evidence from whatever historic time frame you care to choose to prove the point. Click and drag the forecast, QED, quod…
A lot of us spend an inordinate amount of time reading through erudite commentators on anything related to markets. ‘Stay informed’ is a common headline logo. Does this collective wisdom improve investment decisions? The current equity rally has a fountain of opinion on why and what it means. Wordplay is part of the fun: FOMA,…
Great debates on longer term economic trends and the impact on financial markets are often a go-to conversation with investors. Few call up to ask what is the discount rate or cash flow yield, but many have opinions on issue such as debt and globalisation. The latter is a tough topic as globalisation is a…
